Introduction :: MACEDONIA

Macedonia gained its independence peacefully from Yugoslavia in 1991. Greek objection to Macedonia’s name, insisting it implies territorial pretensions to the northern Greek province of the same name, and democratic backsliding have stalled the country’s movement toward Euro-Atlantic integration. Immediately after Macedonia declared independence, Greece sought to block Macedonian efforts to gain UN membership if the name “Macedonia” was used. Macedonia was eventually admitted to the UN in 1993 as “The Former Yugoslav Republic of Macedonia,” and at the same time it agreed to UN-sponsored negotiations on the name dispute. In 1995, Greece lifted a 20-month trade embargo and the two countries agreed to normalize relations, but the issue of the name remained unresolved and negotiations for a solution are ongoing. Since 2004, the US and over 130 other nations have recognized Macedonia by its constitutional name, Republic of Macedonia. Ethnic Albanian grievances over perceived political and economic inequities escalated into an insurgency in 2001 that eventually led to the internationally brokered Ohrid Framework Agreement (OFA), which ended the fighting and established guidelines for constitutional amendments and the creation of new laws that enhanced the rights of minorities. Relations between ethnic Macedonians and ethnic Albanians remain fragile, however.

A nearly three-year political crisis that engulfed Macedonia finally ended in June 2017 following a six-month-long government formation period after a closely contested early legislative election in December 2016. The crisis began after the 2014 legislative and presidential election, and escalated in 2015 when the opposition party began releasing wiretap content that it alleged showed widespread government corruption. Although Macedonia became an EU candidate in 2005, the country still faces challenges, including overcoming the political crisis, fully implementing the OFA, resolving the outstanding name dispute with Greece, improving relations with Bulgaria, halting democratic backsliding, and stimulating economic growth and development. At the 2008 NATO Summit in Bucharest, Romania, the Allies agreed that Macedonia would be invited to join the Alliance as soon as a mutually acceptable resolution to the name dispute was reached with Greece.

note: minority languages are co-official with Macedonian in municipalities where they are spoken by at least 20% of the population; Albanian is co-official in Tetovo, Brvenica, Vrapciste, and other municipalities; Turkish is co-official in Centar Zupa and Plasnica; Romani is co-official in Suto Orizari; Aromanian is co-official in Drusevo; Serbian is co-official in Cucer Sandevo

amendments: proposed by the president of the republic, by the government, by at least 30 members of the Assembly, or by petition of at least 150,000 citizens; draft amendments require approval by majority vote of Assembly members, followed by public debate; final passage requires two-thirds majority vote of the Assembly; amended several times, last in 2015 (2016)

cabinet: Council of Ministers elected by the Assembly by simple majority vote; note - the 2014 cabinet formed by the government coalition parties VMRO-DPMNE, DUI, and several small parties; as a result of an agreement reached in July 2015 between the largest parties to resolve a 16-month opposition boycott of the Assembly, several minister and deputy minister positions were also given to the opposition SDSM from November 2015 through May 2016 in preparation for parliamentary elections originally scheduled for 24 April 2016, and pushed back to 5 June 2016, and again from September to December 2016

elections/appointments: president directly elected by absolute majority popular vote in 2 rounds if needed for a 5-year term (eligible for a second term); election last held on 13 and 27 April 2014 (next to be held in 2019); following legislative elections, the leader of the majority party or majority coalition is usually elected prime minister by the Assembly

judge selection and term of office: Supreme Court judges nominated by the Judicial Council, a 7-member body of legal professionals, and appointed by the Assembly; judge tenure NA; Constitutional Court judges appointed by the Assembly for nonrenewable, 9-year terms

Economy :: MACEDONIA

Since its independence in 1991, Macedonia has made progress in liberalizing its economy and improving its business environment. Its low tax rates and free economic zones have helped to attract foreign investment, which is still low relative to the rest of Europe. Corruption and weak rule of law remain significant problems. Some businesses complain of opaque regulations and unequal enforcement of the law.

Macedonia’s economy is closely linked to Europe as a customer for exports and source of investment, and has suffered as a result of prolonged weakness in the euro zone. Unemployment has remained consistently high at about 23%, but may be overstated based on the existence of an extensive gray market, estimated to be between 20% and 45% of GDP, which is not captured by official statistics.

Macedonia is working to build a country-wide natural gas pipeline and distribution network. Currently, Macedonia receives its small natural gas supplies from Russia via Bulgaria. In 2016, Macedonia signed a memorandum of understanding with Greece to build an interconnector that could connect to the Trans Adriatic Pipeline that will traverse the region once complete, or to an LNG import terminal in Greece.

Macedonia maintained macroeconomic stability through the global financial crisis by conducting prudent monetary policy, which keeps the domestic currency pegged to the euro, and inflation at a low level. However, in the last two years, the internal political crisis has hampered economic performance, with GDP growth slowing in 2016 and 2017, and both domestic private and public investments declining. Fiscal policies were lax, with unproductive public expenditures, including subsidies and pension increases, and rising guarantees for the debt of state owned enterprises, and fiscal targets were consistently missed. In 2017, public debt stabilized at about 47% of GDP, still relatively low compared to its Western Balkan neighbors and the rest of Europe.

note: official data from Ministry of Finance; data cover central government debt; this data excludes debt instruments issued (or owned) by government entities other than the treasury; includes treasury debt held by foreign entitites; excludes debt issued by sub-national entities; there are no debt instruments sold for social funds

public service TV broadcaster Macedonian Radio and Television operates 3 national terrestrial TV channels and 2 satellite TV channels; additionally, there are 5 privately owned TV channels that broadcast nationally using terrestrial transmitters, 4 TV channels with concession for cable TV, 5 satellite TV channels broadcasting on a national level, 47 local commercial TV channels, and a large number of cable operators that offer domestic and international programming; the public radio broadcaster operates over multiple stations; there are 3 privately owned radio stations that broadcast nationally and about 75 local commercial radio stations (2017)

Military and Security :: MACEDONIA

Army of the Republic of Macedonia (ARM; includes General Staff and subordinate Joint Operational Command, Logistic Support Command, Training and Doctrine Command, Special Ops Regiment, Electronic Surveillance Center, and Air Surveillance Center) (2017)

major transshipment point for Southwest Asian heroin and hashish; minor transit point for South American cocaine destined for Europe; although not a financial center and most criminal activity is thought to be domestic, money laundering is a problem due to a mostly cash-based economy and weak enforcement